December 27


What Is a Sponsoring Broker? The Basics You Need to Know

By Brent Porter

December 27, 2019

sponsoring broker

You’ve completed all 180 hours of licensing education and managed to pass the exam. You’ve even managed to find a sponsoring broker, but the amount of commission they take out of your pocket almost feels like extortion.

You’re thinking about going it on your own and we don’t blame you.

It’s going to mean staying active as a real estate agent and going back to school full time. You’ve got a lot of hard work and long days ahead of you. 

Fortunately, there’s an easier way.

If you’re ready to break up with your broker, stick around and we’ll tell you how you can. 

Option 1: Become a Broker

To become a broker in Texas, there are both education and experience requirements. 

You’ll need a total of 900 classroom hours: 270 hours of approved Pre-Licensing course work and 630 related classroom hours. You must complete the former two years before you apply for your license.

At the end of each class, there is a final exam. To get your license, you must pass each test with a score of 70% or better so study hard. 

Then there’s the experience.

That’s at least 4 years as an active, licensed real estate agent or broker within the 5 years before you apply.


Remember to report a total of 3,600 points to the Qualifying Experience Report for Broker License. You’ll need that too. 

Option 2: Get a New Kind of Sponsoring Broker

Broker Breakup is a new kind of brokerage agency.

Instead of giving us most of your commission on every sale, you pay us a small monthly or annual fee. The fee we charge is a fixed rate. It’ll always be the same amount even if you have a record-breaking sales streak. 

You work hard to sell homes under someone else’s brand. Your charisma and positive attitude strengthen your broker’s image. You deserve your own brand to build and we can give that to you. 

It’s time to stop toiling away for someone else and start striving toward your own success. Our sponsorship tools that can make it happen. 

Sponsorship Plans

One of our three Sponsorship Plans is sure to suit your needs. 

LLC Sponsorship Plan (LLCSP)

Instead of a monthly fee, this plan is available with a one-time setup charge of $1,500. In exchange, you get a Texas limited liability company (LLC) and a Broker’s License from the Texas Real Estate Commission (TREC). 

The setup fee covers: 

  • Secretary of State filing fees
  • TREC filing fees
  • Time spent licensing the LLC
  • Arranging MLS access with the local board of realtors
  • Developing an Office Policy Manual and other materials

The entire process takes about four weeks to complete. In the meantime, you can stay with your current broker or sponsor you ourselves. 

You’re the sole owner of the company. Broker Breakup’s principal owner is the sponsoring broker and manager. As long as you maintain your Texas real estate license, you’ll remain in compliance with TREC’s requirements

You can even hire your own agents and act as their sponsoring broker. The first agent carries a monthly fee of $225. Each subsequent agent is $125 per month. 

Negotiate commission splits anyway you want. It’s your company after all. 

This is the perfect plan for experienced sales agents. If you’re still getting your feet wet, one of our Individual Sponsorship Plans may be a better fit for you. 

Individual Sponsorship Plan 1 and 2 (ISP1 and ISP2)

Less experienced sales agents still need a guiding hand. We can give this to you and you still get to keep your commission. 

You only have to do two things:

  1. Choose between ISP1 for $199 per month or ISP2 for $350 per year.

  2. Name Pinnacle Realty Advisors as your sponsoring broker. 

Changing sponsorship is easy. All you have to do is fill out and return Sales Agent Sponsorship Form-1 to TREC. Detailed instructions are on the form. 

Other Charges

There is an annual fee for Errors and Omissions Insurance (E&O) and ISP has a per-transaction fee.

E&O costs $250 for plan 1 or $80 for plan 2. Participants in the LLCSP program must procure their own E&O insurance. 

ISP2’s transaction fees are on a fixed sliding scale and range from $150 to $300 per transaction up to $500,000. Add $25 per $50,000 over $500,000. For example, the fee for a $600,000 transaction is $350. 

Splits, desk fees, and other hidden costs are a thing of the past. 

Plan Features

In addition to the features we’ve already mentioned, you’ll also gain access to the following features and tools: 

Senior Level Broker Support

We’ll give you all the support and guidance you need to be successful. If you have questions, all you have to do is give us a call. 

With the ISP plans, you get support 24 hours a day, 7 days a week. You’re surrounded by people who want you to prosper and we’ll do everything we can to make that happen. 

In-House Attorney

If you need legal advice, you can turn to our in-house attorney. There’s no need to hire your own and there are no extra fees for seeking counsel. 

Professional Letterhead

You’ll get a professional-quality letterhead from Pinnacle Realty Advisors so all your communications look the part. Clients will know you’re a qualified agent capable of taking care of their needs. 

Breakup With Your Broker Today! 

If it’s time to break it off with your broker, let Broker Breakup step in to pick up the pieces. We’ll act as your sponsoring broker and you’ll get to keep what you earn. 

If you still have questions, read our FAQ’s or Contact us

When you’re ready, sign up and we’ll get the ball rolling as soon as possible. 

Brent Porter

About the author

Brent Porter brings a decade of extensive knowledge of the real estate industry across the real estate life cycle. He began his career with C-III Asset Management, formerly ARCAP, where he managed distressed CMBS debt and spearheaded loan workout strategies by means of modifications, bankruptcy, or foreclosure. While at C-III, he participated in the largest B-piece CMBS buy-out in the nation. He later transitioned to Hudson Americas Real Estate LLC, a global affiliate of Private Equity firm Lone Star Funds. There, he served as North America-Asset Manager where he was responsible for operational value-add and monetization of +100MM in distressed CRE assets including multi-family, office, and retail properties across the country and was promoted to Vice President. Most recently, he held the position of Director of Asset Management at Invitation Homes, an affiliate of Blackstone. While at Invitation Homes, he developed the platform necessary to purchase, rehab, and operate $10B in single-family real estate assets. He also brought the first single-family rental backed securitization to market, and helped to consolidate the SFR market under Invitation Homes

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